Global regulators call for stronger buffers for clearing houses
London
CLEARING houses may need bigger cash buffers to shield taxpayers from bailing them out, global regulators said on Tuesday in proposals aimed at stopping the sector from becoming a new breed of "too big to fail" firms.
Clearing houses such as LCH.Clearnet and Eurex Clearing stand between two sides of a derivatives trade to ensure its completion even if one side goes bust. They handle transactions such as interest rate and credit default swaps worth trillions of dollars.
TRENDING NOW
National Day Rally: 8 things to know, from more childcare leave to higher BTO income ceiling
Stocks to watch: Mapletree Industrial Trust, OUE, OUE Healthcare
When every phone becomes a satellite phone, what happens to Asia’s telcos?
UltraGreen.ai’s big slump: Was it the Singapore market that failed the company, or vice versa?